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8A BIPRU firm must not include a capital instrument that is not a share at stage B1, B2 or C of the calculation in the capital resources table unless (in addition to satisfying all the other requirements in relation to tier one capital and hybrid capital) the firm's obligations under the instrument either:(1) do not constitute a liability (actual, contingent or prospective) under section 123(2) of the Insolvency Act 1986; or(2) do constitute such a liability but the terms of the

A firm must recognise an asset or liability, and measure its amount, in accordance with the relevant accounting principles applicable to it for the purpose of preparing its annual financial statements unless a rule requires otherwise.

(1) The capital resources requirement for a firm carrying on only2home financing, 1which is not connected to regulated mortgage contracts, 2or home financing1and home finance administration1 which is not connected to regulated mortgage contracts2 (and no other regulated activity) is the higher of:111111(a) £100,000; and(b) 1% of:(i) its total assets plus total undrawn commitments and unreleased amounts under the home reversion plan1; less:(ii) excluded loans or amounts 1plus intangible

When calculating total assets, the firm may exclude a loan or plan 1which has been transferred to a third party only if it meets the following conditions:(1) the first condition is that the loan or the plan 1has been transferred in a legally effective manner by:(a) novation; or(b) legal or equitable assignment; or(c) sub-participation; or(d) declaration of trust; and(2) the second condition is that the home finance provider1:1(a) retains no material economic interest in the loan

(1) Covered bonds means covered bonds as defined in paragraph (1) of the definition in the glossary (Definition based on Article 22(4) of the UCITS Directive) and collateralised by any of the following eligible assets:(a) exposures to or guaranteed by central governments, central bank, public sector entities, regional governments and local authorities in the EEA;(b) (i) exposures to or guaranteed by non-EEA central governments, non-EEAcentral banks, multilateral development banks,

Subject to GENPRU 1.3.9 R to GENPRU 1.3.10 R and GENPRU 1.3.36 R, except where a rule in GENPRU, BIPRU or INSPRU provides for a different method of recognition or valuation, whenever a rule in GENPRU or BIPRU14 refers to an asset, liability, exposure, equity or income statement item, a firm must, for the purpose of that rule, recognise the asset, liability, exposure, equity or income statement item and measure its value in accordance with whichever of the following are applicable:(1)

Except where a rule in GENPRU or BIPRU makes a14 different provision, GENPRU 1.3.4 R applies whenever a rule in GENPRU or BIPRU14 refers to the value or amount of an asset, liability, exposure, equity or income statement item, including:(1) whether, and when, to recognise or de-recognise an asset or liability;(2) the amount at which to value an asset, liability, exposure, equity or income statement item; and(3) which description to place on an asset, liability, exposure, equity

(1) This paragraph applies to a proportional ICAAP in the case of a firm that is a significant IFPRU firm (see IFPRU 1.2.3 R) whose activities are complex.(2) A proportional approach to that firm'sICAAP should cover the matters identified in IFPRU 2.3.34 G and IFPRU 2.3.35 G, but is likely also to involve the use of models, most of which will be integrated into its day-to-day management and operation.(3) Models of the kind referred to in (2) may be linked to generate an overall

(1) The following are excluded from a firm'sforeign currency PRR calculation:(a) foreign currency assets which have been deducted in full from the firm'scapital resources under the calculations under the capital resources table;(b) positions hedging (a);(c) positions that a firm has deliberately taken in order to hedge against the adverse effect of the exchange rate on the ratio of its capital resources to its capital resources requirement; and(d) transactions to the extent that

IPRU-INV 12.3.5R can be illustrated as follows: 1
Share Capital £20,000 Reserves £30,000 Subordinated loans/debts £10,000 Intangible Assets £10,000 As subordinated loans/debts (£10,000) are less than the total of share capital + reserves – intangible assets (£40,000) the firm need not exclude any of its subordinated loans/debts pursuant to IPRU-INV 12.3.5R. Therefore, total financial resources1 will be £50,000.

When calculating initial capital, a firm may include its audited retained earnings only after making the following adjustments: (1) a firm must not recognise the fair value reserves related to gains or losses on cash flow hedges of financial instruments measured at amortised cost; (2) in respect of a defined benefit occupational pension scheme, a firm must derecognise any defined benefit asset;
(3) a firm must not include any unrealised gains from investment

When calculating initial capital, a firm may includes its partners' capital only after making the following adjustments: (1) a firm must not recognise the fair value reserves related to gains or losses on cash flow hedges of financial instruments measured at amortised cost; (2) in respect of a defined benefit occupational pension scheme, a firm must derecognise any defined benefit asset;
(3) where applicable, a firm must deduct any asset in respect of deferred

Table: Items which are eligible to contribute to the capital resources of a firmItemAdditional explanation1.Share capitalThis must be fully paid and may include:(1)ordinary share capital; or(2)preference share capital (excluding preference shares redeemable by shareholders within two years).2.Capital other than share capital (for example, the capital of a sole trader, partnership or limited liability partnership)The capital of a sole trader is the net balance on the firm's capital

Table: Items which must be deducted from capital resources 1Investments in own shares2Intangible assets (Note 1)3Interim net losses (Note 2)4Excess of drawings over profits for a sole trader or a partnership (Note 2)NotesNotes 1. Intangible assets are the full balance sheet value of goodwill (but not until 14 January 2008 - see transitional provision 1), capitalised development costs, brand names, trademarks and similar rights and licences.2. The interim net losses in row 3, and

When calculating initial capital, a firm may include its audited retained earnings only after making the following adjustments: (1) a firm must not recognise the fair value reserves related to gains or losses on cash flow hedges of financial instruments measured at amortised cost;(2) in respect of a defined benefit occupational pension scheme, a firm must derecognise any defined benefit asset;
(3) a firm must not include any unrealised gains from investment

When calculating initial capital, a firm may include its partners' capital only after making the following adjustments: (1) a firm must not recognise the fair value reserves related to gains or losses on cash flow hedges of financial instruments measured at amortised cost;(2) in respect of a defined benefit occupational pension scheme, a firm must derecognise any defined benefit asset;
(3) where applicable, a firm must deduct any asset in respect of deferred

When calculating a firm’s capital resources, the following adjustments apply to retained profits or (for sole traders or partnerships) current accounts figures:(1) a firm must deduct any unrealised gains or, where applicable, add back in any unrealised losses on cash flow hedges of financial instruments measured at cost or amortised cost;(2) a firm must de-recognise any defined benefit asset; (3) a firm may substitute for a defined benefit liability its deficit reduction amount